Why Online Onboarding and Mobile Onboarding Is Vital to Success in the Financial Services Industry

Pressure is mounting on organisations across industries – particularly those in the financial services sector – to offer remote online onboarding and mobile onboarding to new customers.

The reason is simple.

Today, consumers are using their personal computers and mobile phones to complete all manner of tasks and transactions – order groceries, pay bills, book holidays, apply for jobs, you name it. To meet these demands, organisations are building advanced capabilities across their digital touchpoints. It’s now a baseline expectation of banks, for example, to provide a mobile app that can facilitate everything from balance checks to automated bill payments, money transfers, and around-the-clock customer service. However, no matter how many nifty and convenient online and mobile experiences a bank – or any other organisation for that matter – might offer, these efforts won’t amount to much if they can’t get new customers onboard in the first place.

Onboarding can be a company’s very first interaction with a new customer – and you only get one chance to make a lasting first impression. Customers today expect a quick and seamless sign-up process that gives them immediate access to the services they desire. Any hiccup in the onboarding process can see them abandoning the process altogether. A recent report from Instantor reveals that 56% of financial services applications were abandoned in the UK in 2018 – up from 40% in 2016. In Germany, 40% of customers abandoned bank applications in 2018, and a massive 60% in Sweden. Lengthy processes, long forms, confusing language, and the need to provide too much personal information were among the top reasons customers gave for abandoning applications.

New Legislation Is Changing the Digital Banking Landscape

The banking landscape is also changing drastically. From the rise of digital-only challenger banks to incumbents shuttering branches at unprecedented rates, the need for financial services providers to offer online onboarding and mobile onboarding (as opposed to in-branch) has never been more pressing.

What’s more, new legislation has come into force over the past couple of years, designed to stimulate competition in the banking sector and provide a level playing field for new market entrants. The UK’s Open Banking initiative and the EU’s revised Payment Services Directive (PSD2) both obligate banks to provide licenced third-party providers (TPPs) access to their customers’ accounts through open application programming interfaces (APIs). The idea is to finally release the stranglehold incumbent banks have exclusively held over customers and their data, enabling FinTechs and other startups to provide personalised financial services and products to banking customers.

The Open Banking Implementation Entity has reported there are now 100 regulated providers, of which 17 TPPs are now using Open Banking in the UK. Open Banking technology was reportedly used 17.5 million times in November 2018, up from 13.9 million in October and 6.5 million in September.

2019 will likely be the year Open Banking really takes off and as such, it is expected that more customers will start switching accounts to gain access to new services that weren’t previously available, leading to an escalation of new mobile onboarding and online onboarding transactions.

Online Onboarding and Mobile Onboarding Solutions from TOC Biometrics

An increase in remote account openings naturally raises concerns about fraud and security in relation to online onboarding and mobile onboarding processes. As such, solutions for onboarding new customers in compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements online and via mobile are essential. What’s more, solutions need to be intuitive and easy to use from a customer’s standpoint if financial services providers are to reduce application abandonment rates.

TOC Biometrics’ advanced Digital Signature and facial biometric identity verification solutions enable banks and other organisations across both commercial and governmental industries to carry out mobile and online onboarding quickly and securely. Integrated easily into any customer-facing web or mobile application via our cloud-based API, our digital onboarding solutions allow companies to remotely verify a customer’s identity, perform the necessary due diligence, collect KYC data, and obtain a highly-secure and legally binding digital signature.

Also see: ‘What Is Digital Signature and Why Does My Company Need It?’

TOC Biometrics’ world-leading solutions completely eliminate the need to use passwords, PIN numbers, or other external devices during the online onboarding or mobile onboarding process. This speeds up transactions, and ensures that you can deliver customer journeys that are fast, frictionless, and safe.

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With over 8 years’ experience and more than 5 million digital signature transactions every month, TOC Biometrics is the leading provider of ID verification solutions. Discover how our tools can help you start fulfilling demands for online onboarding and mobile onboarding by registering for an account today. Get in touch to find out more.